"You can't have an extension of flexible working and at the same time clamp down on the means by which many small businesses cope with it, which is often through temporary workers.

"The current flexible working regime seems to be working, but the Westminster government should be cautious about extending it too far, which could be damaging to small businesses and, as a result, the millions of people they employ.

"Bringing in a whole new set of complicated employment regulations for temporary workers on top of that could make the situation untenable for many small businesses."

The FSB, which has 20,000 member in Scotland, is particularly concerned as the majority of Scots firms are small or medium-sized with more than 90 per cent employing less than 10 people.

However, the report was welcomed by other trade bodies and unions.

Mike Emmott, employee relations adviser of the Chartered Institute of Personnel and Development, said: "Our research shows that part-time and flexible workers are happier, more engaged with their work, and therefore likely to perform better and be more productive."